marvin in washington d.c. and here's what's coming up tonight on the big picture. reaganomics has thrown the middle class into a debt fueled bubble for the past thirty years now republicans want to deregulate student loans handing a whole new generation over to the tender mercies of goldman sachs and j.p. morgan chase the same time we forgave student debt and made college free like republican presidents abraham lincoln and dwight eisenhower did also cypriot leaders agreed to a new bailout plan this morning to save their nation's banks it is a really change anything and it's time we started calling billionaires what they really are oligarchy so you why in tonight's deleted.

you need to know this thirty years of reaganomics has left baby boomers and generation x. drowning in debt and now right now republicans want to force a generation y. or millennial into economic servitude. you see up until the one nine hundred eighty s. things were doing pretty good you could have you know a single person with a single income in a household which means that you had an entire buffer that person lost their job their spouse could go to work a single person a single household could basically raise a family put kids through school buy a house own a car income was good ball average savings rates before reagan around eleven percent now all this is changing now that we've done this incredible experiment of thirty two years of reaganomics. after about thirty years of reaganomics by two thousand and eight c.e.o.

pay had exploded it dropped down a little during the bush great crash but it's bounced back up again right now it's around three hundred fifty times what the average worker makes. in comparison the workers' share of the economy has shrunk their way this is c.e.o. pay here is blue line two hundred ninety eight percent this is from one thousand nine hundred ninety is reaganomics has really taken off until two thousand and five c.e.o. pay the green line here is the stock market so people who are invest in the stock market they're doing just fine this is the standard and poor's same thing basically the green line is corporate profits production workers pay however people who are actually making the stuff the goods and services that the c.e.o.'s are making the profit off of the people who are making it their play their pay has pretty much flatlined and the federal minimum wage which several do tens of millions of people in america are actually working at in one thousand nine hundred until now in two

thousand and five is actually gone down almost ten percent. like the minimum wage right now if it was where it was in one thousand sixty eight was inflation just to be ten dollars and twenty cents more or less so wages have failed to keep up with income and with productivity. here's our average earning die it won't get we skip that here's the here we see productivity going up wages flatten out now what's the gap between productivity and wages. profits. so what's been going on here is that profits were basically shared with workers i mean you could take this all the way back to the george washington ministration. from the founding of this republican to and this starts in forty seven this particular graph but basically throughout this era as well as workers made more money for their employers their employers paid them more pretty straightforward

agreement right and then came the reagan presidency right here and reagan said no to that are you kidding we're going to start by throw out the air traffic controllers and we're going to take on everybody else so the productivity the ability to produce profits continue to increase wages flat and up this gap here became profit that went to the c.e.o. this is why the c.e.o.'s are making three hundred times four hundred times five hundred times more than the average worker this went to the c.e.o.'s so how did these people keep up as incomes have declined guess what skyrocketed get this is how the this is how the average american kept up with the rising cost of living and just you know my ongoing life is it continued although there is a piece we're going to get to in just a minute education this is just credit card debt but it's an example here's household income growth and by the way household income growth only went up because

more than one person went to work if this was individual pay individual workers' pay that line would actually be negative. and then this is the debt per household growth of depor household we're looking from one thousand nine hundred eighty reagan's presidency until a couple years ago two thousand or. so since reagan to make ends meet americans have had to extend their credit lines their home mortgages sunk further and further into debt so huge problem for the middle class who by the way the middle class well here we are but a. debt. the bottom ninety percent own seventy three percent of the debt the top five percent own five percent of our debt and so really simple middle class odes the richest of the rich so then there was also this housing bubble caused by the banks or as they ran to maxed out their credit cards the max out their housing debt and so what came next the banks

a ton of money selling off their bad debt about their investors great recession made all this worse in fact before world war two private debt was about fifty percent of g.d.p. today it's over two hundred fifty percent of g.d.p. which is mind boggling it's higher than it was during the great depression debt strangles the economy and what's the latest part of those student loans look at the explosion in student loan debt it's just totally taken off and why well very simple in one thousand nine hundred four the reagan revolution a single wage earner with a high school diploma can raise a family and one hundred percent of that twelve year education that high school diploma was free now it takes sixteen years to get an entry level job four years of college and if mom's working and most moms are many moms are more than half than it takes eighteen or nineteen years of school to get that entry level job and yet still only twelve of those years are paid for free the rest of that is expensive.

college pre-k. preschool daycare so what we see is the shifting of educational costs from government which is always paid for twelve years on to students and their families . so by september two thousand and twelve the total student loan debt was nine hundred fifty six billion almost one trillion dollars this is a massive bubble and like mortgages it's going to burst on friday senate republicans led by texas senator ted cruz voted to make the situation even worse let's prioritize federal student loans democrats of course voted it down what we really should be talking about not is how can we help jamie diamond make more money off students but shouldn't we be providing every everybody with a free education is capable of getting in the way. the white eisenhower did the way it most of the other developed countries in the world and shouldn't we be unwinding all that student debt to free the next generation let's ask anthony randolph the

director of economic research at the reason foundation anthony welcome to the program and thanks for having me so we've got students in debt a trillion dollars in the united states. something we've never seen before we've never had student like this abraham lincoln. took his massive amounts of land gave them to individual states to create a land grant colleges of those the all that land could produce enough money that those colleges could be free for their students forever hasn't quite worked out that way but you know it did work out that way for a long long time thomas jefferson crew the first free college in the united states university of virginia you thought it was more important i mean president it's on his tombstone being president isn't a design is jim stone isn't it important for us to go back and say this is crazy we had a deal that we would give you enough free education that you could get a job in the workplace it was twelve years since reagan it now takes at least sixteen years why don't we do what every you know all the other developed countries

do and make education free. will we both know that education isn't free even k. through twelve education that is provided publicly is paid for by tax dollars and so parents are paying for their kids' education a lot of times through their local land taxes not nothing's free in this country but you are correct that student loan debt is completely out of control and a trillion dollars of student loan debt is incredibly suggest to you that to a student who is going to college and having to decide whether or not to pay or you know facing in my generation going to university california where the results are wishing versus going to harvard where it might be ten or twenty thousand dollars a year zero is free. you can get you know if he really is a good speeches about how the code brothers might have to pay for it says the god forbid people might have to pay something but to the student it is free and we should be going back to free education when my dad came back from world war two he not only got a free education i got two hundred dollars

a month to pay for books and to pay for rent it we took from six percent to twenty percent the college educated us is the initial part of your premise here that everybody needs a college education tom do you think that every good night is a four car was talking over you only heard part of it. done do you think that everybody needs a four year college degree to be able to make it and survive in the united states no i don't i think that we should also be offering trade school educations as well one of the biggest problems with the education system as it is right now if people go to college you get bout thirty one percent of people that go to public universities graduate about fifty percent of people who go to private universities graduate there's this massive problem in that we think that just sending everybody just giving buddy a cheaper education let's provide more student loans let's make it cheaper for people to go to go to school let's make it easier for people to get in less explicit expand college access as if that's going to help people get better jobs that that's not the case and in your missoni point will dropping out no no my point

is that free education your premise is let's give everybody a free education whether it be trade school or four years what not it because that's going to be able what helps to give them jobs you send somebody to those california schools that you want people to be able to go to for tuition free seventy percent of them are going to drop out in the first place there's a problem with the education system itself what i'm what i am suggesting is that part of our core infrastructure is our intellectual infrastructure and even if somebody has only had a year i was to have a college there's a tremendous benefit to them from that speaking as one of those people and that the educational infrastructure all is out of the war should all be paying for the same way we pay for our. in our police and our fire departments when you use a public road it is free t.v. even though you do pay taxes college should be free and we should be look at this trillion dollars in student debt that has come about since since reaganomics and saying this is friggin crazy we need to wipe this debt off the books

a trillion dollars the federal government could wipe that off tomorrow and not notice that it created thirty trillion dollars during the banking crisis and in two thousand and eight didn't destroy the country we need to wipe this debt out and start cation at no cost i completely agree that the trillion dollars is completely out of control the fact of the matter is that it's in if you just look at the last ten years so ten years ago student loan debt was about two hundred and fifty billion dollars i think you probably threw up a graph initially by all round two thousand and ten you know it a grown adjusted for inflation some fifty five billion some five hundred fifty billion more dollars since the government took over student loans the rate of increase every year over the past several years has increased twenty three percent of the prophet elijah is two dollars has no that's right that's how much i'm agreeing with you that the probability of those long does the average over and

driving up the cost of education no that is not the case what has happened is that more and more private companies have jumped in and yes they are using those government funds but the the problem is in my opinion these private companies in any case and i wish i had more time to say it that is incredible problem i agree but that doesn't mean that you just need to provide three college for everybody that's not the way to solve this problem certainly not for profit free college i'll give you that anthony thanks for joining us. we'll be right back let me let me one will let me ask you a question. here on this board is we're having a debate we have our knives out of. the do is this is just a bad thing there's again we're in a situation. we're being i don't want to talk about surveillance we. you know sometimes you see a story and it seems so for lengthly you think you understand it and then you

glimpse something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture . here is mitt romney trying to figure out the name of that thing that we americans call i don't know. i'm sorry i'm just a guy who cares an awful lot of money you sir are a fool you know what kind of my terrorist cells in your neighborhood all want to give us a defeat terrorism the olympics and the christian. because you're totally out of the. you know the corporate media distracts us from what you and i should care

about because they're profit driven industry that sells of sensationalistic garbage because that breaking news i'm happy martin and we're going to break that. looking for every dollar up in the field that we won't find it here if you're looking for relevant stories unique perspective from tom my skin's starts. in screwed news detroit's emergency manager kevyn orr begins his term a one man rule today. pointed by michigan governor rick snyder earlier this month or at the podium here will according to state officials at least help to oversee the motor city's struggling finances and usher in a new prosperity era filled with a responsive government for its residents but to many detroiters or is nothing more

than a technocrat tyrant concerned citizens fear that rick snyder's real goal is not to restore the city's financial help but to force corporate governance on its residents they believe in democracy but city representatives not an elected state officials are best equipped to solve the city's problems and detroit residents worry that or will privatized vital social services and smash unions now they're starting to fight back over the weekend to try to some all backgrounds teamed up with union leaders and churches to protest that state's bloodless coup they demanded ors ouster and urged rick snyder to return control of the city's affairs to its rightful elected city council so what's next for detroiters will they succeed in taking back their city as has reverend d. alexander bullock founder of change agent consortium and an opponent of the state's emergency management plan welcome thank you tom good to be on the show it's always

great to have you with us or today is detroit emergency manager kevyn orr's first day on the job how's it doing. well you know it's his first day on the job. and we expect for him to be doing exactly what govern the snyder hired him to do namely depressed democracy sell off city assets we heard that later on this week there's going to be an announcement about the state of the salaries for the mayor and city council and so on first day it is business as usual from the snyder administration but we met him there this morning to remind governor snyder and kevyn orr that we will not stand by while democracy is under attack in michigan but we're fighting back. what how do you think you said you think that this is going to play out that he's going to be selling off city services and we saw this in benton harbor and you came on this program you were one of the first voices you know quite

alarmed about it and you did a great job of informing our viewers. about how there was this city park that had been given to the city back in the nineteen ots or the nineteen teens in the name of the daughter of the family who earned their daughter died it was right on the lake is very valuable property it was really important to urban city kids to have this park and and rick snyder put a. what he call emergency manager in there and they sold it off to a golf club which is exactly what you were predicting. what do you predict they're going to steal from detroit and sell off to rick snyder's corporate cronies this time. will we predict that target number one is the water department we believe that the water and sewage department will be taken from the city of detroit it will be made it's a separate entity a private company will management manage it and they will float bombs from it we also believe bailout is on the target list as an island in the in the detroit

river up there or is it minister or it's that right if i did it it's in detroit river it's in highland it's a beautiful asset and the governor obviously was trying to get bill out couple months ago city council rejected the deal but we believe under the emergency manager bill will also be only and there's a group of billionaires who are interested in belle-isle they want to turn into a libertarian paradise nothing but rich people allowed as a gated city on an island. you know what that was one of the proposals that was reported in the news that a billionaire wanted to bobby allow we've also heard they want to put huge homes on be allowed in and make it a private island i mean this is a public asset the city of detroit owns bill out operates bill out of just such a beautiful place and so and so we are seeing you between the water department bill out of jobs for city workers union contracts being busted we believe that the

emergency manager has been given a targeted goal of of basically disenfranchising democracy and selling city asses but we want them to know that they are being watched and we are organizing to have a response to stop this kind of activity so what can people do want to help here our boy. well if people want to help us please go to action see ac or r g action. or o r g this information on the website the people who want to help us also go to our facebook page change agent consortium change agent consortium and there's also information there we do need your support there's a petition online actually at whitehouse that g.o.p. we are calling on the federal government to investigate and possibly to intervene we need people to help us by getting a signature is on that petition and that's what people can do right now and hopefully we can come back on the show at

a later time with more options for folks who want to support our fight against democracy i want to fight for democracy rather there you go reverend boehlert thanks so much for all the great work you donna for being with us. thank you so much. from one financial mess to another separate officials finally agreeing to a new bailout terms of the e.u. and i.m.f. this morning a stable off that island's exit from the euro zone at least for now a new plan provides the ten billion in funds needed to prevent financial collapse but hits large depositors those with more than one hundred thousand euros about one hundred twenty hundred thirty thousand dollars in their accounts with as much as a thirty percent tax or levy or theft. while the new bail out lacks the most controversial aspects of last week's plan that is a tax on all accounts below one hundred thousand euros and still maintains the principle of depositors paying for the bank's toure's crimes a even scarier we still don't know whether or not the cyprus fiasco was

a test run for the e.u. xnews austerity strategy or just a one time mistake by brussels joining us from our new york studios to talk more about the broader area around with occasions of the cyprus deal its impact on the eurozone as a whole is max broad wolf economist an instructor at the graduate program in the international affairs at the new school university and senior analyst for green cross capital max welcome back thanks always a pleasure to join you thanks for having me great to have us with you so i am starting to think that maybe i should be going down to my bank and saying give me all my money although i understand that if you ask for more than five thousand dollars they have to call the f.b.i. or something like that i mean you know it is if should americans be worried are europeans worried and what's going to happen when the banks finally open now they moved back to thursday in cyprus. so as a regular american possible viewer of this show or should be viewer of the show of course you should not be worried about your bank immediately today and your account

probably at one of the big four where most of the accounts are this really isn't germane to your everyday banking activities as a european you might be a little more nervous although still obviously if you're not in cyprus or banking with cypriot banks the threat to you is not quote unquote immediate on the other hand this is a citizen of the world alone a citizen under the jurisdiction of the european central bank of the european parliament or a citizen under the jurisdiction of that troika or even the i.m.f. you might be worried that we now sort of have we have attempted a true precedent setting case and we've got a sort of minor precedent setting case which is if your bank makes enough bad investments the uninsured at least the uninsured portion of your deposits may be seized in order to write the good bank bad bank redevelopment structure what we saw agreed to really in the last twenty four hours between the i.m.f. the european central bank at the various parties in the troika in cyprus i mean isn't this what we saw in the late one nine hundred twenty s.

or early one nine hundred thirty s. here in the united states and in other countries around the world where as the banks were going down they paid off their stockholders they paid their c.e.o.'s they paid bonuses and then they closed the doors in fact you know within a week or so of f.d.r.'s come in and being sworn into office i think all the bank pretty much all the banks in america closed and all the money that was deposited there was gone just gone i mean hasn't that fire wall bit intact ever since then basically since legs last great depression or had there been other breaches of it beyond this one that's proposed for cyprus and and if not doesn't this mean that that you know we've entered a whole new era. that we may we may be on the brink of a new era i think that remains to be seen though it's possible certainly had we taken the nine point nine percent haircut suggestion where all the accounts including those under one hundred thousand euros that were fully insured had they been haircut then we would certainly convincingly frighteningly be in your quote

unquote new era where i think we need to remember is we have f.d.i.c or federal deposit insurance corporation and the european union has a version of it as well exactly because of the memory of the period before we had it all fractional reserve banking systems including the one of the united states and the one in cyprus and the one throughout the european union and the world writ large are faith based organizations they have about ten percent of the money ten twenty percent of the money that depositors could claim on hand so their faith based and that they rely on people staying confident and not taking out all their money should that happen there are all kinds of measures but confidence is usually quickly lost and there's tom bolten dislocation what slows that our various rules about access to money and the extreme case that you cited visit v.v. early days of the f.d.r. government in the united states you can declare something called the banking holiday which f.d.r. did and which by the way the cypriot authorities have done because they knew

there'd be runs on the bank the term for everyone tries to get their money out at the same time and you end up with the financial equivalent of a stampede in a crowded theater. and. while it's obvious that that's still a very very real possibility maybe probability for cyprus even if they don't go after the small and in peril if they're not going to small deposit holders. if i were an italian or a spaniard or a you know somebody living in ireland or portugal or pretty much any other even country other than germany i would be seriously thinking about moving my money out of at least banks the bank in the european union maybe when the swiss bank something like that that is. a rational plan. i'm not sure if it's could be rational but it will be widespread all prophecies like the one that you reasonably suggest there have an element of self-fulfillment so we should keep in mind all market prophecies are potentially self-fulfilling so as long as lots of people

believe in the prophecy it becomes real whether or not the underlying facts truly support it it will be good for foreign banks or any bank that can take deposits that can say hey we're not in the bad shape that your local banks are so that's that's a big deal there because also there's generational risk here as well as all kinds of wealth loss so once people have lost their confidence of the institution it's expensive difficult and time consuming to begin to rebuild that confidence is there huge costs there in addition the thirty to forty percent haircuts thought that these people the wealthy will have will have route vacations and remember cyprus passed an entire austerity program that will hit all those people who might still have their deposits we're going to pay more taxes for less services going forward. maxwell thanks so much for being with us. thank you. great to see you.

you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you. are welcome is a big. potentially deadly blizzard taking aim for the northeast it's expected to hit stunning in a few hours from new york to maine we have team coverage of the storm. but what we're watching is that the. heavy snow moving into boston proper earlier today it was very sticky you can see it start to become much more powdery down so the bottom line there is still a lot of snow out here a good place for snowball fight if. the senate is going to pretty incredible day

there and even record snowfall throughout much of it might still be a slog through driving listening merge and see if we are exceptional. the worst for those things. but out superman the radio guy and minister of a quick fix i want to quote a good judge of you've never seen anything like this i'm told. about the big picture i'm tom arbonne coming up in the sap.